IMF lowers forecasts for Angola and Cape Verde’s GDP growth

15 September 2006

Washington, USA, 15 Sept – The International Monetary Fund (IMF) Thursday lowered its estimate for gross domestic product (GDP) growth in 2006 and 2007 for the Angolan and Cape Verdean economies while it maintained its forecast for Mozambique.

In its World Economic Forecasts report, the IMF said it expected the Angolan economy to grow by 14.3 percent this year, or 11.7 percentage points less than it forecast in April, and should then accelerate to an annual growth rate of 31.4 percent in 2007.

Forecasts for Cape Verde were also lowered, from 7.0 percent to 5.5 percent in 2006 and from 6.5 percent to 6.0 percent in 2007.

The IMF expects Mozambique’s economy to grow 7.9 percent in 2006, them slow to an annual rate of 7.0 percent.

For Sao Tome and Principe and Guinea Bissau the IMF expects more moderate growth rates of 5.5 percent and 4.6 percent, respectively this year.

Sao Tome is expected to be the Portuguese-speaking African country with the highest rate of inflation (19.8 percent in 2006 and 17.2 percent in 2007) and Angola may be able to reduce its inflation from two digits (12.9 percent) to a single digit (8.3 percent).

In terms of foreign debt the performance of the five countries will be quite distinct from 2006 to 2007. Angola will increase its surplus, Cape Verde and Guinea Bissau’s deficit is expected to increase, Sao Tome to reduce its deficit and Mozambique’s debt levels are expected to remain unchanged. (macauhub)